This may actually be one of the best times in history to raise early-stage capital. — Common knowledge at this point is that deal volume is down considerably from pre-crisis times, but less clear is how early-stage startups have been impacted since most coverage we’ve seen is focused on large later-stage funding activity. Also unclear is how much valuations have been compressed (especially in California where…

This may actually be one of the best times in history to raise early-stage capital. — Common knowledge at this point is that deal volume is down considerably from pre-crisis times, but less clear is how early-stage startups have been impacted since most coverage we’ve seen is focused on large later-stage funding activity. Also unclear is how much valuations have been compressed (especially in California where…

A comprehensive list of outbreak-driven fundraising narratives we’ve heard from startup founders — With half of Americans now ordered to “shelter in place,” we’re definitively in the throes of the Coronavirus (COVID-19) outbreak. In the startup world, venture capitalists have put the breaks on new deals as they assess the cash positions of their portfolio companies, potential systemic risks, and what the new…

Like the general population during a pandemic, startups fall into low-risk and high-risk groups. — Baron Rothschild famously said “buy when there’s blood in the streets,” but when the metaphor is playing out in real-time it’s hard for any investor to imagine backing a venture deal. Though venture capitalists know there are plenty of great opportunities when markets are distressed, everyone puts on their breaks…

Not all economic slowdowns result in a crisis. — Many within the startup community believe we’re staring the next recession in the face. Founders I’ve been working with are trying to figure out what that means for go-to-market strategies reliant on venture capital. …

Take 2019 by the horns by subjecting your goals to a premortem. — It’s the time of year when the founders in my orbit are discussing their company’s goals for 2019. Every one of them is excited to take the new year by the horns. Their goals are specific, impactful, and carefully modeled in spreadsheets. Their teams and investors will surely be thrilled…

Why a Vision Statement is the most important line of code a startup will ever write. — Traditional Vision Statements are Exciting for the Company A traditional vision statement is aspirational for a company; it describes where the company is going if it’s successful. It can also be limiting when viewed through the lens of a venture capitalist. Tesla’s is an example of a good traditional vision statement: “To create the most compelling car company…

In Q3, ICO markets finally developed a demand for traction. — The ICO market has experienced a sudden cultural shift that has left concept-stage blockchain founders grappling with the same increased demand for evidence of traction that has long stymied founders trying to raise capital in traditional VC markets. …

Dramatically improve the odds of your venture’s success by rooting out and mitigating knowable risks with a premortem. — In startup culture, optimism tends to flourish at the expense of honest pessimism. At Foundational, we embrace this by starting our strategy engagements collaborating with our clients to agree on how the world must be changing, what their teams are doing to bring about that change, and how we will…